Multinational Corporations Are Making The Contract Abroad

1235 Words5 Pages
We are living in 21 century the age of innovation, growth, and technology. Many Multinational Corporations are making the contract abroad to make more profit. Today, more people and nations are working together to make union principles to encourage respect to human rights and protect environment. Although making more profit and getting new projects are essential keys to be successful in competitive market, companies have to follow the rules of the country where they are participating for different reason such as making more profit and less cost, protecting environment and healthcare, and gaining more market share. (CMIBRIEF, Jan 2007, Volume 6 No, 2) First, in 1984, 2000 people were killed due to lack of safety standards by UCIL…show more content…
Also, the weakness of this case was the two part couldn’t speak English. This case was dismissed by U.S. court and they agreed that this case should be heard in Indian court, however, these cases can be heard that in more than one court. Finally, in 1989, the supreme court of India approved a fund of $470 million to the victims of the disaster (Schaffer, Augesti, & Dhooge, 2014). Second, in 2010, BP rig blew up into the Gulf of Mexico. It was killed 11 people. According to biological diversity (2014) it was the worst environmental disaster in U.S., 82000 birds were killed, and more than 2 million gallons of chemical poison sprayed into the Gulf of Mexico. In July 2009, the court received a request from Salazar Company which is service Management Company about releasing oil to the ocean which was operated by BP Company. Court agreed that BP was guilty for this disaster because its exploration was without attention to environment standards. Therefore, today BP well known as the worst environmental and safety record of any oil company operating in America. Third, the lack of following the rules of the country where multinational company participate has more cost. According to Schmitz (2012), a survey with 48 percent of employees indicated that they had done something unethical or illegal in the past year and the cost are total US$400 billion annually. It shows that companies can make more
Open Document